Level 5

Question

2021 Conquest RV - Tax Treatment?

Forum|Forum|3 years ago
January 23, 2023
1 reply
9 views

C Corp purchased 2021 Conquest RV for $67k.

Tax Period: 12.1.20 - 11.30.21

1. Form 4562 - therefore need to answer following q's.

a. Available for personal use during off-duty hours

b. Used primarily by >5% owner or related persons

c. Another vehicle available for personal use.

d. Total miles during the year:

1. Commuting miles

2. Business miles

3. Other personal miles

2. Tax Depreciation method - MACRS - 5 years. - Report on 2020 1120.

Would these q's and tax method and est life be correct?

ProSeries Professional

This topic has been closed for replies.

qbteachmt

Level 15

Towable trailer or Motorhome (class A, B, C)? Is someone commuting with an RV? Is it used as a site office?

"Would these q's and tax method and est life be correct?"

Not enough details, including use pattern.

Don't yell at us; we're volunteers

D

dude7707Author

Level 5

Towable trailer or Motorhome (class A, B, C)? - Where do I find reference to which class? Not a Towable trailer.

Is it used as a site office? - To follow up with client.

All of these great Q's - will follow up once have answers.

qbteachmt

Level 15

There is a nice graphic here:

https://www.tripsavvy.com/types-of-motorhomes-2912600

Basically, you have to determine the business use, reason for the vehicle, or it is treated as real estate. Examples:

Site Office (construction site, sales on site, etc)

Air BnB (rental income)

Drive it to rallies as a vendor

Used for personal camping (primary residence, second home) and if personal use, was it taxed as a fringe benefit?

https://www.irs.gov/taxtopics/tc415

Rental Property / Personal Use

You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for a number of days that's more than the greater of: 14 days, or. 10% of the total days you rent it to others at a fair rental price.

That's why %s matter

If mixed use, then mileage matters.

Everything matters. It's not unusual to have a taxpayer who believes putting it in the name of the company turns it into a business asset. There is a story on the web for an RV registered under a business name, and reported on business taxes, which voided the warranty.

Don't yell at us; we're volunteers

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